Regardless of the strong demand for properties, it is extremely common for a number of properties to pass in at auction. This could be as a result of a number things, like unrealistic price expectations, insignificant interest in the property, the timing of an auction and many other reasons. Nevertheless, it doesn’t mean the property is a disaster.
Figures have shown that in Melbourne, roughly 15 to 20% of total auctions pass in each weekend. Whilst a number of properties sell soon after the auction, it is quite common for the property to be listed for a private sale.
Regardless whether you are a seller or a buyer, it can be formidable to negotiate on a price of a property that has not sold at auction.
Luckily, if you are a potential buyer of the passed in property, you are sitting in the throne to negotiate, and if you are the seller, then you are close to closing a deal on the property.
However, remember that at this point of time neither the buyer or seller has the better of the other, which comes back to the main question – what price should the buyer put forward and what price should the seller accept?
Many of us will say – why don’t we pay for what the property is actually worth? However, the fair market value of a property can be expresses as the agreed price between the buyer’s willingness to pay and the seller’s willingness to pay, which will eventually result in an equilibrium price.
Many psychological factors come into play when selling and buying a property, which could potential affect an individual’s ability to negotiate and act rational, in order to secure the perfect deal.